Single Touch Payroll is now in force for businesses of all sizes, with small employers needing to begin STP reporting since 30 September.
Despite the passing of the 30 September deadline, there will be no penalties for mistakes, missed or late reports for the 2019–20 financial year for small businesses, as the ATO adopts a facilitative approach in implementing the new law change.
The ATO will send out “nudge correspondence” to help spur businesses to start STP reporting, with the agency most recently reaching out to tax and BAS agents with a list of clients who have yet to report through STP or engage with the ATO about an appropriate start date.
“To avoid follow-up messages, help your clients work out the right pathway to transition to STP and, if needed, apply for a concession or deferral as soon as possible,” the ATO said.
However, micro employer clients with one to four employees who wish to use the quarterly reporting concession have been reminded to apply for the concession now, ahead of the 28 February 2020 cut-off date.
After this date, quarterly reporting will only be considered for those micro employers with extenuating circumstances.
The full penalty regime for small businesses will then come into effect from 1 July 2020.